<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2025/05/XY37QCAE5VJUZO33FXDBHJYIO4-820x547.jpg" alt="" class="wp-image-621818" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2025/05/XY37QCAE5VJUZO33FXDBHJYIO4-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2025/05/XY37QCAE5VJUZO33FXDBHJYIO4-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2025/05/XY37QCAE5VJUZO33FXDBHJYIO4-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2025/05/XY37QCAE5VJUZO33FXDBHJYIO4-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2025/05/XY37QCAE5VJUZO33FXDBHJYIO4-1536x1024.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2025/05/XY37QCAE5VJUZO33FXDBHJYIO4-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">Women and children wait to be registered prior to a food distribution carried out by the United Nations World Food Programme (WFP) in Thonyor, Leer state, South Sudan, February 25, 2017. REUTERS/Siegfried Modola/File Photo</figcaption></figure>



ROME, May 16 (Reuters)&nbsp;&#8211;&nbsp;Acute food insecurity and child malnutrition rose for a sixth consecutive year in 2024, affecting more than 295 million people across 53 countries and territories, according to a U.N. report released on Friday.



That marked a 5% increase on 2023 levels, with 22.6% of populations in worst-hit regions experiencing crisis-level hunger or worse.



&#8220;The 2025 Global Report on Food Crises paints a staggering picture,&#8221; said Rein Paulsen, Director of Emergencies and Resilience at the U.N. Food and Agriculture Organization (FAO).



&#8220;Conflict, weather extremes and economic shocks are the main drivers, and they often overlap,&#8221; he added.



Looking ahead, the U.N. warned of worsening conditions this year, citing the steepest projected drop in humanitarian food funding since the report&#8217;s inception &#8212; put at anywhere between 10% to more than 45%.



U.S. President Donald Trump has led the way, largely shutting down the U.S. Agency for International Development, which provides aid to the world&#8217;s needy, cancelling more than 80% of its humanitarian programs.



&#8220;Millions of hungry people have lost, or will soon lose, the critical lifeline we provide,&#8221; warned Cindy McCain, the head of the Rome-based World Food Programme.



Conflict was the leading cause of hunger, impacting nearly 140 million people across 20 countries in 2024, including areas facing &#8220;catastrophic&#8221; levels of food insecurity in Gaza, South Sudan, Haiti and Mali. Sudan has confirmed famine conditions.



Economic shocks, such as inflation and currency devaluation, helped push 59.4 million people into food crises in 15 countries &#8212; nearly double the levels seen prior to the COVID-19 pandemic &#8212; including Syria and Yemen.



Extreme weather, particularly El Nino-induced droughts and floods, shunted 18 countries into crisis, affecting more than 96 million people, especially in Southern Africa, Southern Asia, and the Horn of Africa.



The number of people facing famine-like conditions more than doubled to 1.9 million &#8212; the highest since monitoring for the global report began in 2016.



Malnutrition among children reached alarming levels, the report said. Nearly 38 million children under five were acutely malnourished across 26 nutrition crises, including in Sudan, Yemen, Mali and Gaza.



Forced displacement also exacerbated hunger. Nearly 95 million forcibly displaced people, including refugees and internally displaced persons, lived in countries facing food crises, such as Democratic Republic of Congo, Colombia.



Despite the grim overall trend, 2024 saw some progress. In 15 countries, including Ukraine, Kenya and Guatemala, food insecurity eased due to humanitarian aid, improved harvests, easing inflation and a decline in conflict.



To break the cycle of hunger, the report called for investment in local food systems. &#8220;Evidence shows that supporting local agriculture can help the most people, with dignity, at lower cost,&#8221; Paulsen said.



(Reporting by Crispian Balmer; Editing by Toby Chopra)

XY37QCAE5VJUZO33FXDBHJYIO4

Conflict and climate drive record global hunger in 2024, UN says

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2025/05/PLIRT3DJUFM3JI5BCJ3MRQL4T4-820x547.jpg" alt="" class="wp-image-621771" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2025/05/PLIRT3DJUFM3JI5BCJ3MRQL4T4-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2025/05/PLIRT3DJUFM3JI5BCJ3MRQL4T4-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2025/05/PLIRT3DJUFM3JI5BCJ3MRQL4T4-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2025/05/PLIRT3DJUFM3JI5BCJ3MRQL4T4-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2025/05/PLIRT3DJUFM3JI5BCJ3MRQL4T4.jpg 1080w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">Food aid boxes to be delivered all over the world are moved at the Edesia Nutrition facility in North Kingstown, Rhode Island, U.S., May 15, 2025. REUTERS/Lauren Owens Lambert</figcaption></figure>



May 16 (Reuters)&nbsp;&#8211;&nbsp;Food rations that could supply 3.5 million people for a month are mouldering in warehouses around the world because of U.S. aid cuts and risk becoming unusable, according to five people familiar with the situation.



The food stocks have been stuck inside four U.S. government warehouses since the Trump administration&#8217;s decision in January to cut global aid programmes, according to three people who previously worked at the U.S. Agency for International Development and two sources from other aid organisations.



Some stocks that are due to expire as early as July are likely to be destroyed, either by incineration, using them as animal feed or disposing of them in other ways, two of the sources said.



The warehouses, which are run by USAID&#8217;s Bureau for Humanitarian Assistance (BHA),&nbsp;contain between 60,000 to 66,000 metric tonnes of food, sourced from American farmers and manufacturers, the five people said.



An&nbsp;undated&nbsp;inventory list for the warehouses &#8211; which are located in Djibouti, South Africa, Dubai and Houston &#8211; stated that they contained more than 66,000 tonnes of commodities, including high-energy biscuits, vegetable oil and fortified grains.



Those supplies are valued at over $98 million, according to the document reviewed by Reuters, which was shared by an aid official and verified by a U.S.&nbsp;government&nbsp;source&nbsp;as up to date.



That food could feed over a million people for three months, or the entire population of Gaza for a month and a half, according to a Reuters analysis using figures from the World Food Programme, the world&#8217;s largest humanitarian agency.



The U.N. body says that one tonne of food &#8211; typically including cereals, pulses and oil &#8211; can meet the daily need of approximately 1,660 people.



The dismantling of USAID&nbsp;and cuts to humanitarian aid spending&nbsp;by President Donald Trump&nbsp;come as global hunger levels are rising due to conflict and climate change, which are driving more people toward famine, undoing decades of progress.



According to the World Food Programme, 343 million people are facing acute levels of food insecurity worldwide. Of those, 1.9 million people are gripped by catastrophic hunger and on the brink of famine. Most of them are in Gaza and Sudan, but also in pockets of South Sudan, Haiti and Mali.



A spokesperson for the State Department, which oversees USAID, said in response to detailed questions about the food stocks that it was working to ensure the uninterrupted continuation of aid programs and their transfer by July as part of the USAID decommissioning process.



&#8220;USAID is continuously consulting with partners on where to best distribute commodities at USAID prepositioning warehouses for use in emergency programs ahead of their expiration dates,&#8221; the spokesperson said.



<h2 class="wp-block-heading" id="h-some-food-likely-to-be-destroyed">SOME FOOD LIKELY TO BE DESTROYED</h2>



Although the Trump administration has issued waivers for some humanitarian programmes &#8211; including in Gaza and Sudan &#8211; the cancellation of contracts and freezing of funds needed to pay suppliers, shippers and contractors has left food stocks stuck in the four warehouses, the sources said.



A proposal to hand the stocks to aid organizations that can distribute them is on hold, according to the U.S. source and two former USAID sources briefed on the proposal. The plan is awaiting approval from the State Department&#8217;s Office of Foreign Assistance, the two former USAID sources said.



The office is headed by Jeremy Lewin, a 28-year-old former operative of Elon Musk&#8217;s Department of Government Efficiency, who is now overseeing the decommissioning of USAID.



The Office of Foreign Assistance, DOGE and Lewin himself did not respond to requests for comment.



Nearly 500 tonnes of high-energy biscuits stored at a USAID warehouse in Dubai are due to expire in July, according to a former USAID official and an aid official familiar with the inventories. The biscuits could feed at least 27,000 acutely malnourished children for a month, according to Reuters calculations.



The biscuits are now likely to be destroyed or turned into animal feed, the former USAID official said, adding that in a typical year only around 20 tonnes of food might be disposed of in this way because of damage in transit or storage.



Some of those stocks were previously intended for Gaza and famine-stricken Sudan, the former official said.



The State Department spokesperson did not directly respond to questions on how much of the food aid in storage was close to expiry and whether this would be destroyed.



USAID plans to fire almost all of its staff in two rounds on July 1 and Sept. 2, as it prepares to shut down, according to a notification submitted to Congress&nbsp;in March. The two former USAID sources said many of the critical staff needed to manage the warehouses or move the supplies will depart in July.



<h2 class="wp-block-heading" id="h-children-dying">CHILDREN DYING</h2>



The United States is the world&#8217;s largest humanitarian aid donor, amounting to at least 38% of all contributions recorded by the United Nations. It disbursed $61 billion in foreign assistance last year, just over half of it via USAID, according to government data.



U.S. food aid includes ready-to-use therapeutic food (RUTF) such as high-energy biscuits and Plumpy&#8217;Nut, a peanut-based paste.



Navyn Salem, the founder of Edesia, a U.S.-based manufacturer of Plumpy&#8217;Nut, said termination of transportation contracts&nbsp;by USAID&nbsp;had created a massive backlog that had forced the firm to hire an additional warehouse to store its own production.



The resulting stockpile of 5,000 tonnes, worth $13 million, could feed more than 484,000 children, she said.



Salem said that email exchanges with Lewin have left her &#8220;hopeful&#8221; that a way will be found soon to get her product to the desperate children who need it.



The UN children&#8217;s agency UNICEF warned in late March that RUTF stocks were running short in 17 countries due to funding cuts, potentially forcing 2.4 million children suffering from severe acute malnutrition to go without these crucial supplies for the rest of the year.



The four USAID warehouses contain the majority of the agency&#8217;s pre-positioned food stockpiles. In normal times, these could be rapidly deployed to places like Sudan, where 25 million people &#8211; half the country&#8217;s population &#8211; face acute hunger.



Jeanette Bailey, director of nutrition at the International Rescue Committee,&nbsp;which receives much of its funding from the U.S., said it was scaling back its programmes following the cuts.



She said the impact of global shortages of therapeutic foods due to the disruption to U.S. aid flows is difficult to measure, particularly in places where aid programmes no longer operate.



&#8220;What we do know, though, is that if a child&#8217;s in an inpatient stabilization centre and they&#8217;re no longer able to access treatment, more than 60% of those children are at risk of dying very quickly,&#8221; she said.



Action Against Hunger, a non-profit that relied on the United States for over 30% of its global budget, said last month the U.S. cuts had already led to the deaths of at least six childrenat its programmes in the Democratic Republic of Congo, after it was forced to suspend admissions.



<h2 class="wp-block-heading" id="h-cuts-causing-chaos">CUTS CAUSING CHAOS</h2>



The Bureau for Humanitarian Affairs, which coordinates the U.S. government&#8217;s aid efforts overseas, was plunged into chaos by the Trump administration&#8217;s cutbacks, the five sources said.



The bureau&#8217;s staff were among thousands of USAID employees put on administrative leave pending their terminations. While some staff were brought back to work until their severence dates, aid administration has not recovered.



Three sources told Reuters that the contract to maintain USAID warehouses in the South African port city of Durban had been cancelled, raising questions about future aid distribution. Reuters was unable to confirm that independently.



Two former USAID officials said that the Djibouti and Dubai facilities would be handed over to a team at the State Department which has yet to be formed.&nbsp;The State Department did not comment.



A spokesperson for the WFP, which relies heavily on U.S. funding, declined to comment on the stranded food stocks.



Asked if it was engaged in discussions to release them, the spokesperson said: &#8220;We greatly appreciate the support from all our donors, including the U.S., and we will continue to work with partners to advocate for the needs of the most vulnerable in urgent need of life-saving assistance&#8221;.



(Reporting by Ammu Kannampilly in Nairobi, Jessica Donati in Dakar, Emma Farge in Geneva and Jonathan Landay in Washington; Writing by Ammu Kannampilly; Editing by Daniel Flynn)

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US aid cuts leave food for millions mouldering in storage

<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="612" height="357" src="https://cms.cnbcafrica.com/wp-content/uploads/2025/05/istockphoto-1030878162-612x612-1-1.png" alt="" class="wp-image-618547" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2025/05/istockphoto-1030878162-612x612-1-1.png 612w, https://cms.cnbcafrica.com/wp-content/uploads/2025/05/istockphoto-1030878162-612x612-1-1-300x175.png 300w, https://cms.cnbcafrica.com/wp-content/uploads/2025/05/istockphoto-1030878162-612x612-1-1-154x90.png 154w" sizes="auto, (max-width: 612px) 100vw, 612px" /><figcaption class="wp-element-caption">World map with charts and graphs as symbols of global finance</figcaption></figure>



NAIROBI, May 16 (Reuters) &#8211; The following company announcements, scheduled economic indicators, debt and currency market moves and political events may affect African markets on Friday.



<h2 class="wp-block-heading" id="h-global-markets">GLOBAL MARKETS</h2>



Asian stocks were ending a strong week on a softer note on Friday as the euphoria over U.S.-China trade talks faded, while revived bets for policy easing in the United States sparked a rally in beaten-down bond markets.



<h2 class="wp-block-heading" id="h-world-oil-prices">WORLD OIL PRICES</h2>



Oil prices edged up on Friday following a sharp drop in the previous session, heading for a weekly gain of more than 1% as U.S.-China trade optimism outweighed the prospects of Iranian supply returning to the market.



<h2 class="wp-block-heading" id="h-south-africa-markets">SOUTH AFRICA MARKETS</h2>



South Africa&#8217;s rand firmed on Thursday, after a deputy finance minister indicated that a lower inflation target could be introduced soon, analysts said.



<h2 class="wp-block-heading" id="h-africa-currencies">AFRICA CURRENCIES</h2>



The Kenyan and Nigerian currencies are expected to weaken slightly against the dollar in the next week to Thursday, while Uganda&#8217;s and Zambia&#8217;s may hold steady and Ghana&#8217;s could add to recent gains, traders said.



<h2 class="wp-block-heading" id="h-nigeria-inflation">NIGERIA INFLATION</h2>



Nigeria&#8217;s headline inflation rate fell slightly in April, to 23.71% year on year from 24.23% in March, data from its statistics agency showed on Thursday.



<h2 class="wp-block-heading" id="h-kenya-markets">KENYA MARKETS</h2>



Kenya&#8217;s shilling was stable on Thursday but market participants said it could weaken slightly later in the session due to potentially higher demand for dollars from general goods importers.



<h2 class="wp-block-heading" id="h-africa-ebrd">AFRICA EBRD</h2>



The European Bank for Reconstruction and Development (EBRD) has cleared new member states Nigeria, Ivory Coast and Benin for investments following approval by the development finance institution&#8217;s board, it said on Thursday.



<h2 class="wp-block-heading" id="h-rwanda-central-bank-rate">RWANDA CENTRAL BANK RATE</h2>



Rwanda&#8217;s central bank kept its policy rate unchanged at 6.5% in a decision announced on Thursday and said it planned to start buying gold for its international reserves.



<h2 class="wp-block-heading" id="h-guinea-mining">GUINEA MINING</h2>



Guinea has revoked the licences of 46 mining companies operating in the country, a government source told Reuters on Thursday, while another said it could be up to 53 permits, in what some analysts see as a warning shot to larger operators in the world&#8217;s second-largest bauxite producer.



<h2 class="wp-block-heading" id="h-democratic-republic-of-congo-security">DEMOCRATIC REPUBLIC OF CONGO SECURITY</h2>



President Donald Trump&#8217;s senior adviser for Africa said on Thursday he spoke with the presidents of Rwanda and Democratic Republic of Congo about a draft peace deal this week, as Washington seeks to end a decades-long conflict in the region.



((Compiled by Nairobi Newsroom))

istockphoto-1030878162-612×612-1

African Markets – Factors to watch on May 16

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="531" src="https://cms.cnbcafrica.com/wp-content/uploads/2025/05/2X7MTT6PFJLHNHJQSPPJVRHWIE-820x531.jpg" alt="" class="wp-image-621483" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2025/05/2X7MTT6PFJLHNHJQSPPJVRHWIE-820x531.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2025/05/2X7MTT6PFJLHNHJQSPPJVRHWIE-300x194.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2025/05/2X7MTT6PFJLHNHJQSPPJVRHWIE-139x90.jpg 139w, https://cms.cnbcafrica.com/wp-content/uploads/2025/05/2X7MTT6PFJLHNHJQSPPJVRHWIE-768x497.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2025/05/2X7MTT6PFJLHNHJQSPPJVRHWIE-1536x994.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2025/05/2X7MTT6PFJLHNHJQSPPJVRHWIE-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">A general view of the Container Terminal at the port in Durban, South Africa, April 10, 2025. REUTERS/Rogan Ward/File Photo</figcaption></figure>



JOHANNESBURG, May 15 (Reuters)&nbsp;&#8211;&nbsp;U.S. envoys in Africa will be rated on commercial deals struck, not aid spent, a senior State Department official said, touting it as the new strategy for U.S. support on the continent.



President Donald Trump&#8217;s administration wants to eliminate trade deficits and drive mutual prosperity, African Affairs senior bureau official Troy Fitrell said, according to remarks shared on Thursday.



&#8220;Assistance involves a donor and a recipient, but commerce is an exchange between equals,&#8221; he added at the launch of the policy in Ivory Coast on Wednesday.



U.S. ambassadors in Africa had already shepherded 33 agreements worth $6 billion in Trump&#8217;s first 100 days, Fitrell said. &#8220;Trade, not aid, a slogan we’ve seen thrown around for years, is now truly our policy for Africa.&#8221;



U.S. goods exports to sub-Saharan Africa amount to less than 1% of total U.S. trade, according to U.S. think-tank the Center for Strategic and International Studies.



Despite Trump&#8217;s aggressive spending cuts, Washington has pledged a $550 million loan for the Lobito rail corridor, a shortcut for copper and cobalt from Zambia and the Democratic Republic of Congo to Angola&#8217;s Atlantic port, bypassing China-controlled routes.



The U.S. is keen to counter both Chinese and Russian influence on the continent, particularly over minerals and trade. In one of China&#8217;s latest deals on the continent, a $652 million loan agreement was agreed with Nigeria through the Exim bank for a highway feeding the new Lekki port and Dangote refinery.



The U.S. has set six targets to be met before the next U.S.-Africa Leaders Summit later this year, the envoy said.



They include to make commercial diplomacy a core mission, push priority countries to enact business-friendly reforms and back &#8220;bankable&#8221; infrastructure not &#8220;vanity projects&#8221;. It also wants to embark on more business-only diplomatic trips, match export-ready U.S. firms with African ventures and overhaul financing tools to offer faster and more risk-tolerant blended funding.



Global aid groups have widely criticised the U.S. for slashing aid funds to Africa, which they say is costing lives of the most needy.



(Reporting by Colleen Goko; Editing by Andrew Cawthorne)

2X7MTT6PFJLHNHJQSPPJVRHWIE

US shifting Africa strategy to ‘trade, not aid’, envoy says

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="567" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/07/TAKTGYGGUFIUFGNJON3QOOIO24-820x567.jpg" alt="" class="wp-image-502655" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/07/TAKTGYGGUFIUFGNJON3QOOIO24-820x567.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/TAKTGYGGUFIUFGNJON3QOOIO24-300x208.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/TAKTGYGGUFIUFGNJON3QOOIO24-130x90.jpg 130w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/TAKTGYGGUFIUFGNJON3QOOIO24-768x531.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/TAKTGYGGUFIUFGNJON3QOOIO24-1536x1063.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/TAKTGYGGUFIUFGNJON3QOOIO24-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">South African Rand coins are seen in this illustration picture taken October 30, 2020. REUTERS/Mike Hutchings/File Photo</figcaption></figure>



JOHANNESBURG, May 13 (Reuters)&nbsp;&#8211;&nbsp;The South African rand was little changed in early trade on Tuesday before local jobs data, which economists predict could show a slight rise in unemployment.



At 0750 GMT the rand traded at 18.2550 against the dollar, the same level as at Monday&#8217;s close.



Statistics South Africa will release first-quarter unemployment figures at 0930 GMT.



Investec and Nedbank economists forecast an increase from the previous quarter&#8217;s 31.9% official jobless rate as economic growth remains sluggish.



The Business Day newspaper reported that preparations were at an advanced stage for a meeting between President Cyril Ramaphosa and U.S. President Donald Trump in Washington.



Ramaphosa&#8217;s government wants to mend diplomatic and trade ties with the U.S. as relations have soured badly since Trump&#8217;s return to the White House in January.



South Africa&#8217;s benchmark 2030 government bond was also flat in early deals, with the yield at 8.89%.



(Reporting by Sfundo Parakozov; Editing by Alexander Winning)

South African Rand coins are seen in this illustration picture

South African rand flat before local jobs data

<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="612" height="357" src="https://cms.cnbcafrica.com/wp-content/uploads/2025/05/istockphoto-1030878162-612x612-1-1.png" alt="" class="wp-image-618547" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2025/05/istockphoto-1030878162-612x612-1-1.png 612w, https://cms.cnbcafrica.com/wp-content/uploads/2025/05/istockphoto-1030878162-612x612-1-1-300x175.png 300w, https://cms.cnbcafrica.com/wp-content/uploads/2025/05/istockphoto-1030878162-612x612-1-1-154x90.png 154w" sizes="auto, (max-width: 612px) 100vw, 612px" /><figcaption class="wp-element-caption">World map with charts and graphs as symbols of global finance</figcaption></figure>



NAIROBI, May 13 (Reuters) &#8211; The following company announcements, scheduled economic indicators, debt and currency market moves and political events may affect African markets on Tuesday.



<h2 class="wp-block-heading" id="h-events">EVENTS:</h2>



*Uganda&#8217;s central bank announces its latest benchmark lending rate decision.



<h2 class="wp-block-heading" id="h-global-markets">GLOBAL MARKETS</h2>



Asian stocks joined the global rally and the U.S. dollar held on to most of its gains on Tuesday as investors heaved a sigh of relief after a temporary halt in the trade war between the U.S. and China eased worries of a global recession.



<h2 class="wp-block-heading" id="h-world-oil-prices">WORLD OIL PRICES</h2>



Oil prices eased on Tuesday from a two-week high, weighed down by concerns about rising supplies, despite earlier optimism over the pause in the U.S.-China trade war after both countries temporarily cut tariffs.



<h2 class="wp-block-heading" id="h-south-africa-markets">SOUTH AFRICA MARKETS</h2>



The South African rand weakened on Monday, weighed down by a much stronger dollar and lower gold prices after the United States and China announced a deal to cut reciprocal tariffs.



<h2 class="wp-block-heading" id="h-nigeria-economy">NIGERIA ECONOMY</h2>



Nigeria&#8217;s economy recorded its fastest growth in about a decade in 2024, driven by a strong fourth quarter and an improved fiscal position, the World Bank said on Monday, but warned that persistently high inflation remains a challenge.



<h2 class="wp-block-heading" id="h-kenya-markets">KENYA MARKETS</h2>



The Kenyan shilling remained stable in early trade on Monday, with market activity subdued, traders said.



<h2 class="wp-block-heading" id="h-guinea-politics">GUINEA POLITICS</h2>



The prime minister of junta-ruled Guinea announced a new date of December 2025 for elections, seeking to reassure investors in a speech at an African business forum on Monday.



<h2 class="wp-block-heading" id="h-sierra-leone-mining">SIERRA LEONE MINING</h2>



Koidu Limited, Sierra Leone&#8217;s largest diamond producer, has halted operations and laid off nearly its entire local workforce of more than 1,000 employees following a protracted dispute over pay and working conditions.



<h2 class="wp-block-heading" id="h-guinea-mining">GUINEA MINING</h2>



Rio Tinto, expects its first iron ore shipment from Guinea&#8217;s Simandou project in November, Gerard Rheinberger, the Anglo-Australian mining giant&#8217;s managing director for Simandou, said on Monday.



<h2 class="wp-block-heading" id="h-ivory-coast-cocoa">IVORY COAST COCOA</h2>



Cocoa arrivals at ports in top grower Ivory Coast had reached 1.560 million metric tons by May 11 since the start of the season on October 1, up 10.95% from the same period last season, exporters estimated on Monday.



(Compiled by Nairobi Newsroom)

African Markets – Factors to watch on May 13

<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="640" height="427" src="https://cms.cnbcafrica.com/wp-content/uploads/2025/05/6EPQGFLVVJKVRAR2V24PAMYMBA.jpg" alt="" class="wp-image-618704" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2025/05/6EPQGFLVVJKVRAR2V24PAMYMBA.jpg 640w, https://cms.cnbcafrica.com/wp-content/uploads/2025/05/6EPQGFLVVJKVRAR2V24PAMYMBA-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2025/05/6EPQGFLVVJKVRAR2V24PAMYMBA-135x90.jpg 135w" sizes="auto, (max-width: 640px) 100vw, 640px" /><figcaption class="wp-element-caption">A man trades U.S. dollars for Ghanaian cedis at a currency exchange office in Accra, Ghana, June 15, 2015. Picture taken June 15. REUTERS/Francis Kokoroko/File photo</figcaption></figure>



ACCRA, May 8 (Reuters)&nbsp;&#8211;&nbsp;Ghana&#8217;s currency is seen rising further in the coming week to Thursday, while Nigeria&#8217;s and Uganda&#8217;s could be broadly steady and Zambia&#8217;s may drop, traders said.



GHANA



Ghana&#8217;s cedi&nbsp;GHS=&nbsp;is expected to extend its recent gains, bolstered by sustained central bank support and offshore inflows.



LSEG data showed the cedi trading at 13.20 to the dollar on Thursday, compared to 14.00 at last Thursday&#8217;s close.



&#8220;The cedi has rallied considerably in recent weeks on the back of strong FX supply, largely from the central bank, which continues to provide ample support to the local market,&#8221; said Sedem Dornoo, a senior trader at Absa Bank Ghana.



&#8220;We expect the rally to continue in the coming week, likely falling below the 13.00 cedi psychological level,&#8221; he added.



Another trader said: &#8220;The current robust supply of dollars bodes well for the cedi.&#8221;



NIGERIA



Nigeria&#8217;s naira is seen holding steady in the coming week as regular central bank interventions provide liquidity.



The naira&nbsp;NGN=&nbsp;was quoted around 1,607 to the dollar in intraday trading on Thursday, compared with a closing quote of 1,605 naira a week earlier.



The unit was sold at 1,606 naira to the dollar in street trading&nbsp;NGNP=&nbsp;on Thursday.



&#8220;I expect the coming week to trade between 1,600 and 1,615 levels,&#8221; a trader said.



&#8220;The central bank has sold funds at around 1,600 naira. What we can deduce is that the central bank &#8230; is comfortable with those levels,&#8221; the trader added.



UGANDA



Uganda&#8217;s shilling&nbsp;UGX=&nbsp;is seen trading stable, helped by muted hard-currency appetite from importers.



Commercial banks quoted the shilling at 3,655/3,665 to the dollar, unchanged from last Thursday&#8217;s close.



&#8220;(FX) appetite is very low across the board, but also inflows are modest. &#8230; I don&#8217;t expect it (shilling) to break out of its recent range,&#8221; a trader said.



He said the local unit was likely to swing in the 3,645-3,675 to the dollar range in the days ahead.



ZAMBIA



Zambia&#8217;s kwacha&nbsp;ZMW=&nbsp;is likely to marginally fall next week, snapping a winning streak.



On Thursday the currency was quoted at 26.50 from 27.80 a week ago.



Zambia National Commercial Bank said in a note that the local currency had traded stronger this week as dollar buyers stayed out of the market in anticipation of more favourable exchange rates.



&#8220;We expect the kwacha to change course towards weakening as previously hibernating demand tickets resurface,&#8221; the bank said.



(Reporting by Christian Akorlie, Chijioke Ohuocha, Elias Biryabarema and Chris Mfula; Editing by Alexander Winning)

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AFRICA-FX-Ghana’s cedi seen extending gains

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2025/05/tag_reuters.com2025_newsml_LYNXMPEL470NL_12025-05-08T124651Z_1_LYNXMPEL470NL_RTROPTP_3_ANGOLA-ECONOMY-820x547.jpg" alt="" class="wp-image-618677" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2025/05/tag_reuters.com2025_newsml_LYNXMPEL470NL_12025-05-08T124651Z_1_LYNXMPEL470NL_RTROPTP_3_ANGOLA-ECONOMY-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2025/05/tag_reuters.com2025_newsml_LYNXMPEL470NL_12025-05-08T124651Z_1_LYNXMPEL470NL_RTROPTP_3_ANGOLA-ECONOMY-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2025/05/tag_reuters.com2025_newsml_LYNXMPEL470NL_12025-05-08T124651Z_1_LYNXMPEL470NL_RTROPTP_3_ANGOLA-ECONOMY-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2025/05/tag_reuters.com2025_newsml_LYNXMPEL470NL_12025-05-08T124651Z_1_LYNXMPEL470NL_RTROPTP_3_ANGOLA-ECONOMY-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2025/05/tag_reuters.com2025_newsml_LYNXMPEL470NL_12025-05-08T124651Z_1_LYNXMPEL470NL_RTROPTP_3_ANGOLA-ECONOMY.jpg 970w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">A man jogs as office buildings under construction are seen in the distance, in Luanda, Angola, August 26, 2022. REUTERS/Siphiwe Sibeko/File photo</figcaption></figure>



NAIROBI/LUANDA, May 8 (Reuters) &#8211; A $200 million margin call by JPMorgan on Angola&#8217;s $1 billion loan at the height of the global selloff of risky assets has exposed the high costs of unorthodox financing heavily indebted African issuers have been turning to, analysts say.



Africa&#8217;s debt has soared to more than $1.8 trillion, the African Development Bank said, leading to three sovereign debt defaults in the past four years and unconventional financing deals as governments wrestle with high repayments.



Senegal, Gabon and Cameroon are among those who have resorted to so-called &#8220;off-screen&#8221; deals like private bond placements in recent months, as heavy debt burdens and political uncertainty in some cases limit their access to regular markets.



&#8220;We are going to see more of these transactions in the foreseeable future, especially if regular and conventional Eurobond market access remains constrained for single B and low-rated countries,&#8221; said Samir Gadio, head of Africa strategy at Standard Chartered in London.



The yield on bonds Senegal privately placed last year is nearly 100 basis points higher than on its 2031 Eurobond, meaning it is paying more for the new debt, illustrating the costs to countries that are already struggling to fund essential sectors like health and education. Loans often come at a 150-200 bps premium over existing bonds, analysts said.



Southern African crude oil exporter Angola, which is saddled with high external debt to various creditors, including oil-backed loans from China, has become emblematic of the dilemma many governments in the region face.



It entered a one-year Total Return Swap deal with JPMorgan last December, a rarely used financing instrument, backed by freshly issued Angolan government dollar bonds.



The government did not actually raise cash with the $1.9 billion bonds. It used them as collateral for two tranches of $600 million and $400 million loan financing from JPMorgan, to avoid adding the debt to its books.



Its Eurobonds tumbled as investors dumped assets perceived as risky following U.S. President Donald Trump&#8217;s announcement of sweeping trade tariffs.



The price of Angola&#8217;s 2030 bond, which serves as collateral for the loan from JPMorgan, fell from 100 cents on the dollar at the end of March to a low of 86 cents during the selloff, before recovering to 95 cents.



&#8220;The risk with this sort of transaction is that if there is a market shock, then the margin calls could become a burden,&#8221; said Standard Chartered&#8217;s Gadio.



STATE BUDGET HIT



Angola&#8217;s government sought to portray its prompt payment of the $200 million cash demand by JPMorgan for additional security as reassurance for markets.



&#8220;We were ready to present the money. I think it&#8217;s a strong sign,&#8221; Finance Minister Vera Daves de Sousa told Reuters, adding she was looking at the structure of the deal to stave off another margin call.



JPMorgan declined to comment.



Despite the minister&#8217;s assessment, Sub-Saharan Africa&#8217;s second biggest crude exporter is already paying a heavy price for its debt.



Government spending on social services has fallen by 55% since 2015, said Tim Jones, policy director at London-based Debt Justice, a campaign group.



Half the government&#8217;s budget was going towards debt repayments, said Sérgio Calundungo, coordinator of Angolan think-tank OPSA.



This makes it harder to raise money for new infrastructure projects, such as the U.S.-backed Lobito transport corridor linking mineral-rich Democratic Republic of the Congo and Zambia to Angola&#8217;s Atlantic coast.



&#8220;The government&#8217;s debt shows signs of not being sustainable, as budget deficit levels have been high, while real GDP growth has been anaemic and the interest rates faced by the government have been high,&#8221; said Manuel Neto Costa, who served briefly as the economy minister in 2019/20.



Angola said the slide in oil prices has increased the likelihood of a new lending deal with the IMF whose staff are in the country this week. The IMF declined to provide details on potential outcomes.



Analysts are concerned about its ability to manage its debt even if an IMF programme materialises and oil prices recover.



&#8220;Poor fiscal fundamentals mean that sovereign default fears are likely to stay elevated,&#8221; David Omojomolo, Africa economist at investment consultancy Capital Economics, said in a note to clients.



(Reporting by Duncan Miriri in Nairobi and Miguel Gomes in Luanda, Additional reporting by Karin Strohecker in London; Editing by Emelia Sithole-Matarise)

tag_reuters.com,2025_newsml_LYNXMPEL470NL_12025-05-08T124651Z_1_LYNXMPEL470NL_RTROPTP_3_ANGOLA-ECONOMY

JPMorgan’s $200 million Angola margin call reveals Africa’s new debt pains

<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="640" height="413" src="https://cms.cnbcafrica.com/wp-content/uploads/2025/05/ONPJKGIW3JINJER2FFO3ATOOOM.jpg" alt="" class="wp-image-618674" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2025/05/ONPJKGIW3JINJER2FFO3ATOOOM.jpg 640w, https://cms.cnbcafrica.com/wp-content/uploads/2025/05/ONPJKGIW3JINJER2FFO3ATOOOM-300x194.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2025/05/ONPJKGIW3JINJER2FFO3ATOOOM-139x90.jpg 139w" sizes="auto, (max-width: 640px) 100vw, 640px" /><figcaption class="wp-element-caption">An installation depicting barrel of oil with the logo of Organization of the Petroleum Exporting Countries (OPEC) is seen during the COP29 United Nations climate change conference in Baku, Azerbaijan November 19, 2024. REUTERS/Maxim Shemetov/File Photo</figcaption></figure>



LONDON, May 8 (Reuters) &#8211; OPEC oil output edged lower in April despite a scheduled output hike taking effect, a Reuters survey found, led by a cut in Venezuelan supply on renewed U.S. attempts to curb the flows and smaller drops in Iraq and Libya.



The Organization of the Petroleum Exporting Countries pumped 26.60 million barrels per day last month, down 30,000 bpd from March&#8217;s total, the survey showed on Thursday, with cuts by some producers offsetting higher Iranian supply.



The reduction comes despite OPEC+, which comprises OPEC and its allies including Russia, beginning in April to unwind its most recent layer of output cuts. The group plans to accelerate the hikes in May and June, citing supportive market fundamentals such as low inventories.



The full extent of the rises will depend partly on the impact of attempts by U.S. President Donald Trump to clamp down on supply from Iran and Venezuela.



The biggest drop among OPEC members in April was from Venezuela, where exports declined as cargo cancellations to U.S. oil company Chevron&nbsp;CVX.N&nbsp;forced ships to return.



Iraq, which is under pressure to boost compliance with OPEC+ output quotas, also curbed output, the survey found.



There was little change in output from top producer Saudi Arabia, and in Gulf members the United Arab Emirates and Kuwait, despite higher OPEC+ quotas for April.



While the survey and March data provided by OPEC&#8217;s secondary sources show the UAE and Iraq are pumping close to the quotas, other estimates, such as those of the International Energy Agency, suggest they are pumping significantly more.



Among countries pumping more, Iran boosted exports in April, the survey found, and provided OPEC&#8217;s largest output hike with the latest U.S. measures having little impact on output.



The Reuters survey aims to track supply to the market and is based on flows data from financial group LSEG, information from other companies that track flows such as Kpler, and information provided by sources at oil companies, OPEC and consultants.



(Additional reporting by Ahmad Ghaddar; Editing by Kirsten Donovan)

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OPEC April oil output edges lower despite plans for hike, survey finds

<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="612" height="357" src="https://cms.cnbcafrica.com/wp-content/uploads/2025/05/istockphoto-1030878162-612x612-1-1.png" alt="" class="wp-image-618547" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2025/05/istockphoto-1030878162-612x612-1-1.png 612w, https://cms.cnbcafrica.com/wp-content/uploads/2025/05/istockphoto-1030878162-612x612-1-1-300x175.png 300w, https://cms.cnbcafrica.com/wp-content/uploads/2025/05/istockphoto-1030878162-612x612-1-1-154x90.png 154w" sizes="auto, (max-width: 612px) 100vw, 612px" /><figcaption class="wp-element-caption">World map with charts and graphs as symbols of global finance</figcaption></figure>



NAIROBI, May 8 (Reuters) &#8211; The following company announcements, scheduled economic indicators, debt and currency market moves and political events may affect African markets on Thursday.



&#8211; &#8211; &#8211; &#8211; &#8211;



EVENTS



An Abidjan court is set to hear a case that could strip opposition leader Tidjane Thiam of his role as president of the PDCI party.



Uganda&#8217;s central bank is due to announce its latest lending rate decision.



Mauritius statistics office to reveal latest inflation data.



Tanzania statistics office to reveal latest inflation data.



Ethiopia statistics office to reveal latest inflation data.



GLOBAL MARKETS



Shares in Asia firmed on Thursday after U.S. President Donald Trump flagged a first trade deal in his global tariff war, while the dollar tried to hold overnight gains as markets pushed out the chance of near-term rate cuts.



WORLD OIL PRICES



Oil prices steadied on Thursday after falling more than $1 in the previous session as uncertainty over the outcome of trade talks between the U.S. and China, the world&#8217;s two largest oil consumers, weighed on investor sentiment.



SOUTH AFRICA MARKETS



The South African rand slipped on Wednesday as investors took profits after a strong run against the dollar.



KENYA MARKETS



The Kenyan shilling &lt;KES=&gt; was flat against the dollar on Wednesday, London Stock Exchange Group (LSEG) data showed.



SUDAN SECURITY



Sudan&#8217;s army said its anti-aircraft systems intercepted drones on Wednesday targeting a naval base in the wartime capital Port Sudan.



GUINEA MINING



Guinea has initiated a process to revoke Emirates Global Aluminium&#8217;s mining licence in the West African nation, two people with knowledge of the matter told Reuters on Wednesday.



KENYA BUDGET



Kenya&#8217;s government will not impose new taxes or increase existing ones in this year&#8217;s budget proposals, the finance minister said, after deadly protests broke out last year against the government&#8217;s measures to raise revenue.



MALI POLITICS



Mali has suspended political activities across the country ahead of a planned protest against the military junta that has ruled since coups in 2020 and 2021, authorities said on Wednesday.



KENYA ANTS



A Kenyan court on Wednesday fined four men $7,700 each for trying to traffic thousands of ants valuable to the country&#8217;s ecosystem, in cases experts say signal a shift in biopiracy from trophies like elephant ivory to lesser-known species.

African Markets – Factors to watch on May 8

<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="612" height="357" src="https://cms.cnbcafrica.com/wp-content/uploads/2025/04/istockphoto-1030878162-612x612-1.png" alt="" class="wp-image-615497" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2025/04/istockphoto-1030878162-612x612-1.png 612w, https://cms.cnbcafrica.com/wp-content/uploads/2025/04/istockphoto-1030878162-612x612-1-300x175.png 300w, https://cms.cnbcafrica.com/wp-content/uploads/2025/04/istockphoto-1030878162-612x612-1-154x90.png 154w" sizes="auto, (max-width: 612px) 100vw, 612px" /><figcaption class="wp-element-caption">World map with charts and graphs as symbols of global finance</figcaption></figure>



May 7 (Reuters) &#8211; The following company announcements, scheduled economic indicators, debt and currency market moves and political events may affect African markets on Wednesday.



<h2 class="wp-block-heading" id="h-events">EVENTS:</h2>



Mauritius central bank to release its monetary policy decision.



Seychelles statistics office expected to release April inflation data.



<h2 class="wp-block-heading" id="h-global-markets">GLOBAL MARKETS</h2>



U.S. stock futures and Chinese markets rose on Wednesday, as investors cheered news of a meeting between top U.S. and Chinese trade officials as a chance to tone down the tariffs, while China cut interest rates and vowed to support stock markets.



<h2 class="wp-block-heading" id="h-world-oil-prices">WORLD OIL PRICES</h2>



Oil prices rose on Wednesday, holding slightly above recent four-year lows, as investors focused on U.S.-China trade talks and signs of lower U.S. production.



<h2 class="wp-block-heading" id="h-south-africa-markets">SOUTH AFRICA MARKETS</h2>



The South African rand held steady for much of Tuesday&#8217;s trading session after the release of a purchasing managers&#8217; index (PMI) survey that showed the country&#8217;s private sector showed signs of stabilisation in April.



<h2 class="wp-block-heading" id="h-kenya-markets">KENYA MARKETS</h2>



The Kenyan shilling was steady on Tuesday, supported by remittances and muted foreign-currency demand, traders said.



<h2 class="wp-block-heading" id="h-sudan-politics">SUDAN POLITICS</h2>



Explosions were heard in the Sudanese city of Port Sudan early on Wednesday, a Reuters witness reported, adding that the Sudanese army launched anti-aircraft missiles.



<h2 class="wp-block-heading" id="h-nigeria-china-road">NIGERIA CHINA ROAD</h2>



Nigeria has approved a $652-million China Exim Bank funding package for construction of a road to move goods from a sea port and petroleum refinery on the edge of its main city Lagos to its southern states, the public works minister said.



<h2 class="wp-block-heading" id="h-congo-security">CONGO SECURITY</h2>



The Democratic Republic of Congo and Rwandan-backed M23 rebels have restarted peace talks in Qatar, sources said on Tuesday, part of a diplomatic effort to end fighting in Congo&#8217;s war-ravaged east.



<h2 class="wp-block-heading" id="h-kenya-economy">KENYA ECONOMY</h2>



Kenya&#8217;s economy grew 5.1% year-on-year in the fourth quarter of 2024, compared to 6.1% in the same quarter of the previous year, the country&#8217;s statistics office said on Tuesday.



<h2 class="wp-block-heading" id="h-uganda-politics">UGANDA POLITICS</h2>



A Ugandan opposition activist, who President Yoweri Museveni&#8217;s son said he had been holding captive in his basement, appears to have been tortured, the East African nation&#8217;s justice minister said.



((Compiled by Nairobi Newsroom))

African Markets – Factors to watch on May 7

<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="728" height="487" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/12/rand2-1.jpg" alt="" class="wp-image-568119" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/12/rand2-1.jpg 728w, https://cms.cnbcafrica.com/wp-content/uploads/2024/12/rand2-1-300x201.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/12/rand2-1-135x90.jpg 135w" sizes="auto, (max-width: 728px) 100vw, 728px" /><figcaption class="wp-element-caption">South African bank notes featuring an image of former South African President Nelson Mandela are displayed at an office in Johannesburg, File. REUTERS/Siphiwe Sibeko</figcaption></figure>



JOHANNESBURG, May 7 (Reuters)&nbsp;&#8211;&nbsp;The South African rand was little changed in early trade on Wednesday, as global investors focused on an interest rate decision by the U.S. Federal Reserve later in the day.



At 0650 GMT, the rand traded at 18.22 against the dollar compared with Tuesday&#8217;s closing level of 18.19.



The Fed is widely expected to keep rates steady, amid concerns over an economic slowdown due to U.S. President Donald Trump&#8217;s tariffs.



News that U.S. and Chinese officials are due to hold talks eased concerns about a trade war that have shaken investor confidence in the dollar and U.S. markets.



No major South African economic data releases are expected on Wednesday.



President Cyril Ramaphosa will launch the second phase of an economic reform drive aimed at lifting the country&#8217;s potential growth rate.



Thursday&#8217;s data releases include local manufacturing and foreign reserves data.



South Africa&#8217;s benchmark 2030 government bond was flat, the yield at 8.92%.



(Reporting by Sfundo Parakozov; Editing by Alexander Winning)

rand2 (1)

South African rand flat with global focus on US rate decision

<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="3000" height="2000" src="https://cms.cnbcafrica.com/wp-content/uploads/2025/05/UAEGGMUWGNOR5C6IQ37UZWX4UM.avif" alt="" class="wp-image-617800"/><figcaption class="wp-element-caption">A 3D-printed miniature model of U.S. President Donald Trump with the United Nations logo in the background is seen in this illustration taken April 23, 2025. REUTERS/Dado Ruvic/Illustration/File photo</figcaption></figure>



BRUSSELS/LONDON, May 5 (Reuters)&nbsp;&#8211;&nbsp;The United States is seeking to weaken a global deal aimed at helping developing countries struggling with the impacts of climate change and other issues, an internal United Nations document seen by Reuters showed.



The Trump administration opposes draft reforms of the world&#8217;s financial system intended to help developing countries, including around taxation, credit ratings and fossil fuel subsidies. It also wants mentions of &#8220;climate,&#8221; &#8220;gender equality&#8221; and &#8220;sustainability&#8221; stripped out.



The previously unreported document sheds light on how the Trump administration is seeking to imprint an &#8220;America First&#8221; agenda, including opposition to efforts to slow climate change and promote diversity, on the institutions at the heart of fixing global systemic crises.



The once-a-decade, 4th International Conference on Financing for Development (FFD4) in Seville, Spain, in June aims to influence the strategic direction of the world&#8217;s development finance institutions. Countries agreed at FFD3, for example, to broaden tax cooperation efforts so that developing countries could help set the rules and as of last May more than 140 countries were involved.



&#8220;This conference is about bringing the world&#8217;s leaders together and setting the underlying rules and priorities for financing development goals over the next decade,&#8221; Tom Mitchell, executive director of the International Institute for Environment and Development, told Reuters.



Compiled by the permanent representatives to the U.N. of Mexico, Nepal, Norway, and Zambia, with help from the U.N. secretariat, the April 11 negotiating draft is annotated with the positions of the 193 nations involved in the discussions.



At U.N. negotiations over the FFD4 document in March, the U.S. mission said the draft at that time was too long and prescriptive and denounced &#8220;the ever-widening definition of sustainable development.&#8221;



&#8220;The international financial institutions have independent mandates and authorities, and we do not support attempts in the U.N. system to dictate their priorities or activities,&#8221; the U.S. statement from acting U.N. Economic and Social Council representative Jonathan Shrier said.



The U.N. does not hold direct authority over the multilateral development finance institutions.



With ongoing changes at the World Bank and International Monetary Fund in the fight against climate change already facing pushback from U.S. Treasury Secretary Scott Bessent, the document showed it was seeking to water down the U.N.&#8217;s reform prescriptions.



Among specific points in the text that refer to the systemic reform, the document shows the U.S. wants to remove a reference to a &#8220;package of reforms&#8221; for sustainable development. It wants to replace a line promising to &#8220;commit to reform the international financial architecture&#8221; with a pledge to &#8220;recognize the need to enhance its resilience and effectiveness in responding to present and future challenges and crises.&#8221;



Such changes in language signal the degree of shared commitment that can then be used as support for action or inaction in future talks.



U.N. Secretary-General António Guterres has acknowledged the need to overcome multiple challenges ahead of the conference, but urged &#8220;all countries to be at the table in Sevilla focused on solutions,&#8221; spokesperson Florencia Soto Niño said in an email to Reuters.



The&nbsp;Treasury Department and State&nbsp;Department&nbsp;both declined&nbsp;to comment. The White House did not respond to a request for comment.



While the U.S.&#8217; position on development has become tougher under Trump, the negotiating document shows it remains supportive of efforts that include developing countries working more closely with the private sector, and fostering innovation and financial literacy.



<h2 class="wp-block-heading" id="h-climate-change">CLIMATE CHANGE</h2>



A key goal of the global reforms is to better help poorer nations cope with weather disasters, which are worsening due to climate change, and to boost economic development using low-carbon energy rather than traditional fossil fuels.



President Donald Trump has quit the UN Paris climate agreement, slashed U.S. foreign development aid by more than 80% as part of a government overhaul led by billionaire Elon Musk and embarked on a trade war that is hurting many poorer nations.



Among areas of the FFD4 document that the U.S. objects to is a call for countries to explore &#8220;global solidarity levies&#8221; that could include taxes on highly polluting activities or on the super-rich to finance sustainable development.



If included, the levies could be taken up in U.N. negotiations on taxes this year and would bolster a task force led by France, Kenya and Barbados that aims to develop such taxes among smaller groups of countries.



Other countries to object include Russia, Saudi Arabia and China.



The U.S. is also seeking to delete a paragraph calling for companies to pay tax to the countries where economic activity occurs; a paragraph on helping developing countries bolster tax transparency; and another on phasing out inefficient fossil fuel subsidies, the document shows.



Many of the world&#8217;s poorest countries struggle with high debt and the costs of rebuilding after disastrous storms, but the FFD4 document shows the U.S. wants to strike a paragraph on reforming the credit-rating system.



That includes a push for raters to take a more forgiving approach to poorer nations that voluntarily restructure their debt to invest in green projects, it showed.



The U.S. also opposes a commitment to ensure countries receive &#8220;adequate and uninterrupted funding on appropriate terms of social protection and other essential social spending during shocks and crises,&#8221; the document shows.



While the U.S. has considerable influence as the biggest shareholder in both the World Bank, which provides loans and grants to developing countries, and the IMF, and is currently reviewing its role in both, the draft deal is likely to change further as countries continue negotiations in May, before reaching consensus on a final document in mid-June.



The U.S. position puts pressure on other countries to accept a weaker deal, since the talks aim to adopt a deal by consensus.



(Reporting by Kate Abnett and Simon Jessop in LondonAdditional reporting by David Lawder and Daphne Psaledakis in Washington Editing by Dawn Kopecki, Rod Nickel and Stephen Coates)

UAEGGMUWGNOR5C6IQ37UZWX4UM

US seeks to weaken global development finance efforts, UN document shows

<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="612" height="357" src="https://cms.cnbcafrica.com/wp-content/uploads/2021/04/istockphoto-1030878162-612x612-1.jpg" alt="" class="wp-image-400669" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2021/04/istockphoto-1030878162-612x612-1.jpg 612w, https://cms.cnbcafrica.com/wp-content/uploads/2021/04/istockphoto-1030878162-612x612-1-300x175.jpg 300w" sizes="auto, (max-width: 612px) 100vw, 612px" /><figcaption class="wp-element-caption">World map with charts and graphs as symbols of global finance</figcaption></figure>



May 6 (Reuters) &#8211; The following company announcements, scheduled economic indicators, debt and currency market moves and political events may affect African markets on Tuesday.



EVENTS:



Kenya statistics office releases 2025 economic survey, giving details of the 2024 performance and possibly a forecast for 2025.



Release of Kenya&#8217;s Stanbic Bank PMI for April.



<h2 class="wp-block-heading" id="h-global-markets">GLOBAL MARKETS</h2>



Global stocks held tight ranges on Tuesday and the dollar clawed back some of its recent losses against Asian counterparts as investors revived concerns about U.S. tariffs and their impact on economic growth.



<h2 class="wp-block-heading" id="h-world-oil-prices">WORLD OIL PRICES</h2>



Oil prices rebounded over 1% on Tuesday with technical rebound and dip buying after a drop in prior session by OPEC+ decision to accelerate increases in output, although concerns about the market surplus outlook persisted.



<h2 class="wp-block-heading" id="h-south-africa-markets">SOUTH AFRICA MARKETS</h2>



The South African rand strengthened on Monday to its highest levels in five weeks, after state utility Eskom said it was optimistic about the power outlook over the southern hemisphere winter, aiming for no electricity cuts in the next four months.



<h2 class="wp-block-heading" id="h-kenya-markets">KENYA MARKETS</h2>



The Kenyan shilling strengthened a little against the dollar on Monday, London Stock Exchange Group (LSEG) data showed.



<h2 class="wp-block-heading" id="h-sudan-politics">SUDAN POLITICS</h2>



Multiple explosions and fires were seen and heard in Sudan&#8217;s capital Port Sudan early on Tuesday, a witness said, though the exact locations and causes were unclear, as a civil war rocks the previously quiet city for the third day.



<h2 class="wp-block-heading" id="h-sudan-justice">SUDAN JUSTICE</h2>



The International Court of Justice (ICJ) on Monday dismissed Sudan&#8217;s case accusing the United Arab Emirates of fueling genocide in Darfur by supplying weapons to paramilitary forces, saying it lacked jurisdiction.



<h2 class="wp-block-heading" id="h-congo-security">CONGO SECURITY</h2>



Congo and Rwanda have submitted a draft peace proposal as part of a process meant to end fighting in eastern Congo and attract billions of dollars of Western investment, U.S. President Donald Trump&#8217;s senior adviser for Africa said on Monday.



<h2 class="wp-block-heading" id="h-kenya-politics">KENYA POLITICS</h2>



Kenya&#8217;s President William Ruto fended off a shoe thrown at him during a speech about the cost of living which has been a source of public anger, social media videos showed, while a government official said it was accidentally lobbed at the president.



((Compiled by Nairobi Newsroom))

World map with charts and graphs as symbols of global finance

African Markets – Factors to watch on May 6

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2023/09/IMF-World-Bank-to-proceed-with-annual-meetings-in-Morocco-in-October-820x547.jpg" alt="" class="wp-image-427563" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2023/09/IMF-World-Bank-to-proceed-with-annual-meetings-in-Morocco-in-October-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2023/09/IMF-World-Bank-to-proceed-with-annual-meetings-in-Morocco-in-October-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2023/09/IMF-World-Bank-to-proceed-with-annual-meetings-in-Morocco-in-October-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2023/09/IMF-World-Bank-to-proceed-with-annual-meetings-in-Morocco-in-October-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2023/09/IMF-World-Bank-to-proceed-with-annual-meetings-in-Morocco-in-October-1536x1024.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2023/09/IMF-World-Bank-to-proceed-with-annual-meetings-in-Morocco-in-October-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">FILE PHOTO: The International Monetary Fund (IMF) logo is seen outside the headquarters building in Washington, U.S., September 4, 2018. REUTERS/Yuri Gripas/File Photo</figcaption></figure>



NAIROBI, May 5 (Reuters)&nbsp;&#8211;&nbsp;A team of officials from the International Monetary Fund will visit Angola this week, the IMF said, as the country edges closer to a new loan deal with the lender due to pressure following the slide in crude oil prices.



The southern African nation, which is Sub-Saharan Africa&#8217;s second-biggest crude oil exporter, had to pay $200 million last month after JPMorgan demanded more security for its Total Return Swap, a loan backed by Angola&#8217;s dollar bonds.



The IMF did not immediately provide more details on the mission to Angola and the expected outcomes.



Finance Minister Vera Daves de Sousa told Reuters that the drop in oil prices had made a new loan deal with the IMF more likely, adding that the government was studying the potential full impact on its finances.



(Reporting by Duncan Miriri; Editing by Mark Potter

FILE PHOTO: The IMF logo is seen outside the headquarters building in Washington

International Monetary Fund team to visit Angola this week

<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="800" height="507" src="https://cms.cnbcafrica.com/wp-content/uploads/2021/09/JFN5R5LQLJOE7L4Y2UY425AGMU.jpg" alt="" class="wp-image-412065" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2021/09/JFN5R5LQLJOE7L4Y2UY425AGMU.jpg 800w, https://cms.cnbcafrica.com/wp-content/uploads/2021/09/JFN5R5LQLJOE7L4Y2UY425AGMU-300x190.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2021/09/JFN5R5LQLJOE7L4Y2UY425AGMU-142x90.jpg 142w, https://cms.cnbcafrica.com/wp-content/uploads/2021/09/JFN5R5LQLJOE7L4Y2UY425AGMU-768x487.jpg 768w" sizes="auto, (max-width: 800px) 100vw, 800px" /><figcaption class="wp-element-caption">A 3D printed oil pump jack is seen in front of displayed stock graph and Opec logo in this illustration picture, April 14, 2020. REUTERS/Dado Ruvic/Illustration/File Photo</figcaption></figure>



LONDON/DUBAI, May 3 (Reuters)&nbsp;&#8211;&nbsp;OPEC+ has agreed to accelerate oil production hikes for a second consecutive month, raising output in June by 411,000 barrels per day, the group said on Saturday, despite falling prices and expectations of weaker demand.



Following an online meeting lasting just over an hour, the producer group announced the supply increase, saying the fundamentals of the oil market were healthy and inventories were low.



Oil prices fell to a four-year low in April below $60 per barrel after OPEC+ announced a bigger-than-expected production boost for May, and as U.S. President Donald Trump&#8217;s tariffs raised concerns of global economic weakness.



OPEC+ sources have said Saudi Arabia is pushing OPEC+ to accelerate the unwinding of earlier output cuts to punish fellow members Iraq and Kazakhstan for poor compliance with their production quotas.



The hikes also follow calls from Trump on OPEC+ to raise output. Trump will visit Saudi Arabia later in May.



In December, eight OPEC+ countries that have been implementing the group&#8217;s most recent output cut of 2.2 million bpd agreed to gradually phase it out in monthly increases of about 138,000 bpd from April 2025.



The June increase from the eight will take the total combined hike for April, May and June to 960,000 bpd, representing a 44% unwinding of the 2.2 million bpd cut, according to Reuters calculations.



Brent crude futures&nbsp;LCOc1&nbsp;lost more than 1% on Friday to $61.29 a barrel as traders braced for more oil from OPEC+.



Oil prices will fall on Monday due to the OPEC+ news amid trade tensions and concerns about economic growth, said UBS&#8217;s analyst Giovanni Staunovo.



&#8220;We continue to call this a &#8216;managed&#8217; unwind of cuts and not a fight for market share”, he said.



After his participation, Kuwait&#8217;s oil minister said the OPEC+ meeting on Saturday would significantly affect production policy formulation in the coming period.



Reuters reported this week that officials from Saudi Arabia, the de facto leader of OPEC+, have briefed allies and industry officials that they are unwilling to prop up oil markets with further supply cuts.



&#8220;Compliance again appears to be the key focus, with Kazakhstan and Iraq continuing to miss their compensation targets, alongside Russia to a lesser extent,&#8221; said Helima Croft of RBC Capital Markets.



Kazakhstan defied OPEC+ this month when its energy minister said he will prioritise national interests over those of the OPEC+ group when deciding on oil production levels. Kazakhstan&#8217;s April oil output exceeded its OPEC+ quota despite a 3% fall.



OPEC+, which includes the Organization of the Petroleum Exporting Countries and allies such as Russia, is still cutting output by almost 5 million bpd and many of the cuts are due to remain in place until the end of 2026. The group plans to hold a full ministerial meeting on May 28.



(Reporting by Alex Lawler, Maha El Dahan and Ahmad Ghaddar; Writing by Alex Lawler and Dmitry Zhdannikov; Editing by Barbara Lewis and Frances Kerry)

JFN5R5LQLJOE7L4Y2UY425AGMU

OPEC+ agrees another accelerated oil output hike for June

<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="612" height="357" src="https://cms.cnbcafrica.com/wp-content/uploads/2025/05/istockphoto-1030878162-612x612-1.png" alt="" class="wp-image-616259" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2025/05/istockphoto-1030878162-612x612-1.png 612w, https://cms.cnbcafrica.com/wp-content/uploads/2025/05/istockphoto-1030878162-612x612-1-300x175.png 300w, https://cms.cnbcafrica.com/wp-content/uploads/2025/05/istockphoto-1030878162-612x612-1-154x90.png 154w" sizes="auto, (max-width: 612px) 100vw, 612px" /><figcaption class="wp-element-caption">World map with charts and graphs as symbols of global finance</figcaption></figure>



NAIROBI, May 2 (Reuters) &#8211; The following company announcements, scheduled economic indicators, debt and currency market moves and political events may affect African markets on Friday.



&#8211; &#8211; &#8211; &#8211; &#8211;



GLOBAL MARKETS



Asian stock markets and U.S. futures rose on Friday as signs of possible trade talks between the U.S. and China lifted risk sentiment after lacklustre earnings from tech bellwethers Apple and Amazon fuelled worries about the impact of tariffs.



WORLD OIL PRICES



Oil prices climbed on Friday after China said it was open for talks with the United States on tariffs, raising hopes of a de-escalation in a bitter trade war between the world&#8217;s two largest economies.



DEMOCRATIC REPUBLIC OF CONGO MINERALS



The U.S. is pushing Congo and Rwanda to sign a peace accord at the White House in about two months, accompanied by bilateral mineral deals that would bring billions of dollars of Western investment to the region, President Donald Trump&#8217;s senior advisor for Africa told Reuters on Thursday.



NIGERIA TARIFFS



Nigerian billionaire Aliko Dangote said on Thursday he was &#8220;comfortable&#8221; with the impact President Donald Trump&#8217;s tariffs would have on his urea exports to the U.S. because major competitor Algeria had been slapped with a higher levy.

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